PepsiCo missed expectations for second-quarter revenue on Thursday as it faced weak demand for its snacks and sodas mainly in the U.S., its largest market. Inflation-weary U.S. consumers have cut back spending on sodas and salty snacks, prompting PepsiCo to double down on promotions and marketing efforts to bolster volume growth, which has weakened in the last few quarters due to price increases.

Customers are also opting for smaller packs and cheaper alternatives such as those offered by private labels after branded packaged-food companies raised prices to cover rising production and raw material costs.

PepsiCo's average prices jumped 5% for the quarter ended June 15, while organic volume slipped 3%.

Sales at the North America beverages segment, the company's largest unit, accounted for about 30.3% of fiscal 2023 total revenue, while Frito-Lay North America, its second largest unit, contributed about 27%.

The company's net revenue rose to $22.50 billion in the quarter from $22.32 billion a year earlier, while analysts had estimated $22.57 billion, according to LSEG data.

Net income attributable to the company rose $3.08 billion, or $2.23 per share, in the latest quarter, from $2.75 billion, or $1.99 per share, a year earlier.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D'Silva)